Medicago Inc. (TSX-V: MDG) today announced that it has received the approval of its shareholders for the completion of its previously announced $15,975,000 private placement transaction with Philip Morris International.
At a special meeting held in Quebec City earlier today, 40.4% of Medicago shareholders were present or represented by proxy and 99.9% of these shareholders approved the subscription by Philip Morris Participations B.V., a wholly owned indirect subsidiary of PMI, for 45,000,000 units at a price of $0.355 per Unit. PMP now holds an interest of 49.8% of the issued and outstanding common shares of Medicago.
The proceeds of this transaction which were held in escrow since October 21, 2008 will now be released to Medicago. "This transaction represents a major achievement for Medicago. PMI's investment is particularly significant in today's challenging market conditions as it provides us the funding to allow us to realize the full potential of our technology platform and advance our pandemic and seasonal influenza vaccine candidates," said Andy Sheldon, President and CEO of Medicago. "Our innovative proprietary vaccine technology and know-how, coupled with PMI's expertise in plant science and genetics makes for a compelling collaboration. We look forward to combining our respective strengths and capitalizing on the opportunities in the fast-growing vaccine market."
"We are delighted to continue working closely with Medicago. We believe that the tobacco plant represents a natural vehicle to meet the needs for rapid and cost-effective production of vaccines," said Frances Bruttin, VP Applied Science of PMI. "Medicago's tobacco-based technology platform makes it an ideal fit for PMI in exploring adjacent opportunities where synergies exist with our current field of knowledge and our R&D activities." -- www.cnxmarketlink.com
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
